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Standard cost system labor variance

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The following computations of March labor variances for Dots Food Company ae incomplete. The missing items are labeled (a) through (d).

Labor rate variance - 4,800 hours x {(a) - $8.50} = $350 favorable
Labor effieciency variance = (b) x {(c) - 5,000 hours} = $(d)

Is (d) favorable or unfavorable?
On the appropriately labeled lines, please identify each missing item by name (a through c) and show the missing values (a through d). Show supporting computations in the spaces provided.

(a)_______________________________ $_____________________
(b)_______________________________$______________________
(c)________________________________hours
(d) $___________________________
(e) During March, the supervisor left for vacation without arranging for a replacement. Which variances would have been most affected by this situation?

Computations needed:

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Solution Preview

(a) Actual Rate= $8.57
(b) Standard rate= $8.50.
(c) Actual hours= 4800 hours
(d) Labor efficiency variance= $1700
(e) Labor ...

Solution Summary

Standard cost systems for labor variance is provided. The labor rate variance and labor efficiency variance is determined.

$2.19